HARP For Underwater Mortgages Lending Guidelines

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HARP For Underwater Mortgages Lending Guidelines

This BLOG On HARP For Underwater Mortgages Lending Guidelines Was UPDATED On May 27th, 2018

HARP stands for HOME AFFORDABLE REFINANCE PROGRAM:

  • It was created by the Obama Administration to assist homeowners who were victims of the 2008 Real Estate and Mortgage Collapse
  • The purpose was to help homeowners with a mortgage balance that was higher than the actual value of their homes
  • Millions of homeowners turned in their keys to their homes to their lenders and walked due to being upside down on their mortgages
  • This was because their loan balance was substantially higher than the value of their homes
  • To reward homeowners who planned on sticking it out and remain in their homes even though the mortgage balance was higher than the value of their homes, the federal government implemented the HARP for underwater mortgages, in 2009
  • HARP For Underwater Mortgages is offered by the FHFA, the Federal Housing Finance Agency
  • To qualify for the HARP for underwater mortgages program, the loan must be owned and/or guaranteed by Fannie Mae or Freddie Mac
  • Mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac will not qualify for the Home Affordable Refinance Program

Qualification Requirements For HARP For Underwater Mortgages

Many homeowners who went through the real estate market crash of 2008 got so discouraged about having underwater mortgages

  • The shock of losing most or all of the equity in their homes devasted countless of homeowners they have not participated in the Home Affordable Refinance Program
  • The Home Affordable Refinance Program is for conventional loans only
  • Does not apply to FHA loans
  • To participate in HARP for underwater mortgages, home does not have to be an owner occupant home
  • Home can be the following:
    • second home
    • investment home
    • multi-unit 2 to 4 unit primary
    • investment home
    • Condominium
    • PUDS ( Which are Planned Unit Development )
    • manufactured homes

HARP Eligibility Requirements

Other requirements to qualify for the Home Affordable Refinance Program are as follows:

  • The homeowner must be in good standing with their current mortgage loan¬†with timely payments in the past twelve months
  • One 30-day late payment is permitted in most circumstances
  • To participate in the HARP loan program, the current loan-to-value(LTV) MUST be greater than 80%
  • The mortgage loan must have been sold to Freddie or Fannie on or before May 31st, 2009
  • The homeowner needs to be able to afford the new mortgage loan housing payment
  • The Home Affordable Refinance Program got extensions after extensions
  • The deadline for the Home Affordable Refinance Program is set for December 31st, of 2018

Homeowners considering refinancing through the Home Affordable Refinance Program can contact Gustan Cho Mortgage Group at gcho@gustancho.com or call or text at 262-716-8151.

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